Retirement Plans - SEP IRA Taxation

Employer’s contributions to a SEP IRA are immediately tax-deductible by the employer. Contributions are not taxed at the employee’s rate until the employee withdraws the funds. Employees may begin to withdraw money from the plan at age 59.5. All withdrawals are taxed as ordinary income and withdrawals prior to age 59.5 are subject to a 10% penalty tax.



IRA Contributions, Accounts And Investments

You May Also Like

Related Articles
  1. Investing

    How does FINRA differ from the SEC?

  2. Professionals

    Series 99

  3. Professionals

    Series 24

  4. Professionals

    Becoming A Registered Investment Advisor

  5. Professionals

    I have a CFA designation. Do I qualify ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!